By Craig Hale

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Craig Hale

19 September 2025

SMBs are wasting money on failed hires, report claims

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Half of HR leaders are struggling to attract under-30 candidates
Younger workers want more flexible working options
Greater AI training opportunities are needed, Personio says

More than half (54%) of British SMB employees have considered quitting over dissatisfaction with poor pay (33%), their work-life balance (29%, stressful environments (29%) and a lack of career progression opportunities (27%), new research has claimed.

The figures from Personio show how workers quitting has had a major impact on SMBs, with an average expense of £233-235k over the past year wasted on preventable turnover, mis-hires and skill mismatches.
Two in five (38%) HR leaders also agree that talent shortages are now their biggest risk, so is it time to rethink hiring?

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Many SMBs say they can’t get to grips with AI, need more training

AI in customer communication: the opportunities and risks SMBs can’t ignore

Almost half of Gen Z employees claim their bosses simply don’t understand the true benefits of AI, a survey finds, but is more AI actually a good thing?

SMBs are struggling to retain talent
The report found three-quarters (76%) of UK HR leaders now say they’re hiring for skills and aptitude rather than degrees, with two-thirds (67%) anticipating a rise in skill-based hiring over the next year.

Workers are clearly on-board with this, with 73% wanting employers to prioritize transferable skills allowing them access to new opportunities.
However, it’s become evident where companies are failing their workers – only 43% of employees feel they’re getting adequate AI training and support at work. A lack of it is said to make employees 22% more likely to leave.
With 49% of HR leaders now struggling to attract under-30 candidates, despite 74% agreeing that junior talent is important, it’s clear that companies need to offer more engaging learning opportunities to retain talent.

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Personio’s report also reveals evolving post-pandemic trends, with 39% of younger workers saying they’d quit if asked to work from the office more than three days per week. Three in five (62%) agree that the traditional 9-5 is outdated, with 55% across all ages noting better performance when choosing their own hours.
Personio Chief People Officer Lenke Taylor summarized some of the changes companies can make to put them at an advantage: “Investing in development, trusting employees to work flexibly, and hiring for potential – not just on their credentials.”
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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Many SMBs say they can’t get to grips with AI, need more training

AI in customer communication: the opportunities and risks SMBs can’t ignore

Almost half of Gen Z employees claim their bosses simply don’t understand the true benefits of AI, a survey finds, but is more AI actually a good thing?

AI is already disrupting hiring in IT, but not enough businesses are prepared for its impact

Half of social media marketers can’t imagine doing their jobs without AI – yet most admit wasting money on it

CISA blasted by US watchdog for wasting funds and retaining the wrong employees

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